Corporate Profiles - 2024 - 12

GRAIN-BASED FOODS
tactics to be deployed in a very strategic manner to ensure a positive
ROI (return on investment) for Grupo Bimbo. We continue to expand our
distribution to meet the consumers wherever they shop. We continue to
invest in our brands through innovation. "
Among the positives for bakers over the past year has been weakness
in bakery ingredient prices. Standard bakery flour for bread as
of early September was $15.90 a cwt, down 24% from prices a year
earlier. Not all ingredient prices were down as much as flour, and the
benefits of commodity price moves varied considerably from one baked
foods category to another. The weighted composite of ingredient prices,
including flour, shortening and sweetener, as calculated by Milling &
Baking News, was down 15% for white pan bread, 14% for shortbread
cookies, 7% for bagels, 25% for pasta but up 8% for devil's food cake
(reflecting strong cocoa prices). From highs reached over the past four
years, baking ingredient prices were down even more sharply, ranging
from down 50% for saltine crackers to down 24% for devil's food cake.
Still, ingredient prices mostly were higher than pre-COVID-19 figures
prevailing in January 2020, including up 12% for white bread, 20% for
bagels and 99% for devil's food cake.
It has not been all good news for bakers when it comes to input
BAKERY INGREDIENT
INDEXES
White pan bread
Shortbread cookies
Bagels
Pasta
Devil's food cake
Source: Milling & Baking News
costs. While ingredient prices have been lower, labor costs have been
notching upward steadily. Average wages nationally in August 2024
were $35.21 per hour, up 3.8% from a year earlier. Average wages in
August were up 24% from $28.44 per hour at the beginning of 2020,
according to data from the Federal Reserve Bank of St. Louis.
Even as major merger and acquisition activity was completed in
other grain-based segments,
including snack
cakes (e.g.,
Hostess)
% change from year ago
-15%
-14%
-7%
-25%
+8%
and snacks (e.g., Kellanova),
quiet generally
prevailed in deals
involving bread companies.
In fact, rather
than selling the business,
Lancaster Colony
Corp. in May simply
shut down its Flatout
and Angelic Bakehouse businesses. Angelic Bakehouse manufactured
and distributed bread baked from sprouted grains.
Deals that were completed over the past year generally featured
specialty bakers. In June, Engelman's Baking Co., a wholesale baking
company offering a line of fresh and frozen bread products, acquired St.
Armands Baking Co. from Hyde Park Capital. Headquartered in Bradenton,
Fla., St. Armands began as a retail cake and pastry shop in St. Armands
Key, which is in central Florida. The company shifted production
over time to bread and rolls, and it transformed into a wholesale baking
operation. St. Armands' distribution gradually expanded to include
12 \ October 2024
restaurants, hospitals, nursing homes, schools, office buildings, sports
arenas and ball parks.
In December 2023, private equity firm Swander Pace Capital
LEADING FRESH CENTER STORE
hamburger/hot dog buns vendors
Dollar sales
1 Grupo Bimbo SAB de CV
2 Flowers Foods Bakeries LLC
3 Campbell Soup Co.
4 Martin's Famous Pastry Shoppe, Inc.
5 Lewis Bakeries, Inc.
6 United States Bakery
7 Aunt Millie's Bakeries, Inc.
8 King's Hawaiian Bakery West
9 Pan-O-Gold Baking Co.
Private label
Total
LEADING FRESH CENTER STORE
dinner rolls vendors
1 King's Hawaiian Bakery West, Inc.
2 Grupo Bimbo SAB de CV
3 Lewis Bakeries, Inc.
4 Flowers Foods Bakeries LLC
5 United States Bakery
6 Mondelez International, Inc.
7 Martin's Famous Pastry Shoppe, Inc.
8 Dr Schar USA, Inc.
9 Aunt Millie's Bakeries, Inc.
Private label
Total
% change
from
Dollar sales
$977,513,903
$55,404,929
$35,742,994
$23,889,825
$16,647,299
$15,647,805
$15,411,020
$14,694,030
$13,186,066
$176,946,238
$1,462,387,838
LEADING FRESH CENTER STORE FULL-SIZE
donuts vendors
1 Grupo Bimbo SAB de CV
2 The J.M. Smucker Co.
3 McKee Foods Corp.
4 Flowers Foods Bakeries LLC
5 Carolina Foods, Inc.
6 United States Bakery
7 Mrs. Dunster's
8 Alfred Nickles Bakery, Inc.
9 Aunt Millie's Bakeries, Inc.
Private label
Total
% change
from
Dollar sales
$390,080,647
$306,048,136
$170,257,827
$78,800,849
$27,667,097
$20,960,055
$4,316,676
$3,173,418
$2,713,384
$52,094,281
$1,064,076,982
year ago
-2.4%
3.8%
5.0%
2.4%
16.3%
-10.3%
-2.7%
-2.4%
30.3%
4.5%
1.5%
Data for 52 weeks ended July 14, 2024
Total US - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers,
Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Circana OmniMarket Total Store View
year ago
9.0%
-12.8%
18.8%
3.7%
6.1%
125.8%
65.5%
1.2%
8.0%
11.1%
8.7%
$882,665,641
$464,892,608
$298,424,840
$113,271,624
$113,000,255
$91,788,085
$80,875,824
$78,416,062
$47,016,794
$1,044,572,565
$3,397,348,685
% change
from
year ago
0.4%
6.6%
-5.0%
0.3%
20.7%
-0.3%
4.2%
2.7%
5.5%
4.4%
2.4%
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Corporate Profiles
INDUSTRY REVIEW: grain-based foods
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Corporate Profiles - 2024

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